Required information [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses. Fixed selling and administrative expenses $ 48 per unit $ 18 per unit $ 6 per unit $ 440,000 per year $ 11 per unit $ 120,000 per year 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Sales Less: Variable expenses Variable cost of goods sold Income Statement (Variable Costing) Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Income